In 1895, military defeat forced China to cede Taiwan to Japan, however it reverted to Chinese control after World War II. Following the Communist victory on the mainland in 1949, 2 million Nationalists fled to Taiwan and established a government using the 1947 constitution drawn up for all of China. Over the next five decades, the ruling authorities gradually democratized and incorporated the native population within its governing structure. This culminated in 2000, when Taiwan underwent its first peaceful transfer of power from the Nationalist to the Democratic Progressive Party. Throughout this period, the island has prospered to become one of East Asia's economic "Tigers." The dominant political issues continue to be the relationship between Taiwan and China - specifically the question of eventual unification - as well as domestic political and economic reform.

definition: age 15 and over can read and write
total population: 86% (1980 est.)
male: 93% (1980 est.)
female: 79% (1980 est.)
note: literacy for the total population has reportedly increased to 94% (1998 est.)

Republic Day (Anniversary of the Chinese Revolution), 10 October (1911)

Constitution:

1 January 1947, amended in 1992, 1994, 1997, and 1999

Legal system:

based on civil law system; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:

20 years of age; universal

Executive branch:

chief of state: President Shui-bian CHEN (since 20 May 2000) and Vice President Annette Hsiu-lien LU (since 20 May 2000)
election results: Shui-bian CHEN elected president; percent of vote - Shui-bian CHEN (DPP) 39.3%, James SOONG (independent) 36.84%, LIEN Chan (KMT) 23.1%, HSU Hsin-liang (independent) 0.63%, LEE Ao (CNP) 0.13%
elections: president and vice president elected on the same ticket by popular vote for four-year terms; election last held 18 March 2000 (next to be held NA March 2004); premier appointed by the president; vice premiers appointed by the president on the recommendation of the premier
head of government: Premier (President of the Executive Yuan) Shyi-kun YU (since 1 February 2002) and Vice Premier (Vice President of the Executive Yuan) Hsin-yi LIN (since 1 February 2002)
cabinet: Executive Yuan appointed by the president

Legislative branch:

unicameral Legislative Yuan (225 seats - 168 elected by popular vote, 41 elected on the basis of the proportion of islandwide votes received by participating political parties, eight elected from overseas Chinese constituencies on the basis of the proportion of islandwide votes received by participating political parties, eight elected by popular vote among the aboriginal populations; members serve three-year terms) and unicameral National Assembly (300 seat nonstanding body; delegates nominated by parties and elected by proportional representation within three months of a Legislative Yuan call to amend the Constitution, impeach the president, or change national borders)
elections: Legislative Yuan - last held 8 December 2001 (next to be held NA December 2004); note - the National Assembly is a nonstanding body and is called into session
election results: Legislative Yuan - percent of vote by party - DPP 39%, KMT 30%, PFP 20%, TSU 6%, independents and other parties 5%; seats by party - DPP 87, KMT 68, PFP 46, TSU 13, independents and other parties 11

Judicial branch:

Judicial Yuan (justices appointed by the president with consent of the National Assembly; note - beginning in 2003, justices will be appointed by the president with consent of the Legislative Yuan)

Taiwan independence movement, various business and environmental groups
note: debate on Taiwan independence has become acceptable within the mainstream of domestic politics on Taiwan; political liberalization and the increased representation of opposition parties in Taiwan's legislature have opened public debate on the island's national identity; a broad popular consensus has developed that Taiwan currently enjoys de facto independence and - whatever the ultimate outcome regarding reunification or independence - that Taiwan's people must have the deciding voice; advocates of Taiwan independence oppose the stand that the island will eventually unify with mainland China; goals of the Taiwan independence movement include establishing a sovereign nation on Taiwan and entering the UN; other organizations supporting Taiwan independence include the World United Formosans for Independence and the Organization for Taiwan Nation Building

International organization participation:

APEC, AsDB, BCIE, ICC, ICFTU, IFRCS, IOC, WCL, WTrO

Diplomatic representation in the US:

none; unofficial commercial and cultural relations with the people of the US are maintained through an unofficial instrumentality, the Taipei Economic and Cultural Representative Office (TECRO) in the US with headquarters in Taipei and field offices in Washington and 12 other US cities

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about 8% during the past three decades. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to GDP, down from 35% in 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam; 50,000 Taiwanese businesses are established in China. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998-99. The global economic downturn, however, combined with poor policy coordination by the new administration and increasing bad debts in the banking system, pushed Taiwan into recession in 2001, the first whole year of negative growth since 1947. Unemployment also reached a level not seen since the 1970s oil crisis.

total: 1,108 km
narrow gauge: 1,108 km 1.067-m gauge (519 km electrified)
note: in addition to the above routes in common carrier service, there are several thousand kilometers of 1.067-m gauge routes that are dedicated to industrial use (2001)